<PAGE> 1
[AIM LOGO APPEARS HERE]
AIM
SUMMIT
FUND, INC.
SEMIANNUAL REPORT
APRIL 30, 1996
<PAGE> 2
AIM SUMMIT FUND, INC.
For shareholders who seek capital growth through systematic investments.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o Unless otherwise indicated, Fund results were computed without a sales
charge. When sales charges are included in performance figures, those
figures reflect deduction of the Fund's 8.50% maximum sales charge.
The 8.50% sales charge is attributable to the 15-year investment plan.
o Six-month performance results include reinvested distributions of
$0.875 per share.
o AIM Summit Fund's performance figures are historical and reflect
reinvestment of all distributions and changes in net asset value.
o The Fund's investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less
than their original cost.
o The Fund's portfolio is subject to change, and where information as to
specific securities held by the Fund is provided as of the date this
report, there is no guarantee it will continue to hold these same
securities.
o Dollar-cost averaging does not assure a profit and does not protect
against loss in declining markets. And since dollar-cost averaging
involves continuous investing regardless of fluctuating securities
prices, investors should consider their ability to continue purchases
over an extended period of time.
o Past performance cannot guarantee comparable future results.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Dow Jones Industrial Average is a price-weighted average of 30
actively traded primarily industrial stocks.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not
reflect sales charges.
AVERAGE ANNUAL TOTAL RETURNS
As of March 31, 1996
(the most recent calendar quarter)
1 Year 32.37%
5 Years 13.95
10 Years 12.71
This report may be distributed only to current shareholders
or to persons who have received a current prospectus of the Fund.
<PAGE> 3
A Message from the Chairman
- -----------------------
At $3 trillion
in assets, the industry
has grown 1,500 times
over the past 50 years.
If we are to sustain
that growth, we must
have the public's
confidence.
- -----------------------
Dear Shareholder:
"Past performance cannot guarantee comparable future
results."
As a mutual fund investor, you've seen this disclaimer on
every piece of mail you've ever received about your fund.
[PHOTO OF You've seen it so often that you probably don't even think
Charles T. Bauer, about it or question what it means. But you should.
Chairman of That sentence about past performance is true now more
the Board of than ever. These days it bluntly means, "Don't expect the
the Fund, 25% to 35% returns you received last year." Don't
[APPEARS HERE] automatically expect the 15% to 20% returns of the past
decade, either. History shows that the average annual
return is about 9% to 10%. If you're investing in mutual
funds with expectations of double-digit returns every
year, you will be disappointed. Maybe not today, but
sometime in the future.
What is a realistic expectation for 1996? In this uncertain market, it is
easier to discuss what is unrealistic. Last year's performance was an
anomaly--the equivalent of euphoria. To expect a repeat is unrealistic.
I realize I am sounding a warning bell during the mutual fund industry's best
year ever. Investors like you poured $99 billion into stock mutual funds during
the first four months of 1996--the highest inflows on record. At $3 trillion in
assets, the industry has grown 1,500 times over the past 50 years. If we are to
sustain that growth, we must have the public's confidence. Our industry has a
long-standing reputation for honesty and integrity. To maintain that reputation
as our assets swell into the trillions, we must make sure that we don't promise
anything we can't produce.
The industry's concern about investors' expectations goes beyond stamping all
our advertising with a standard disclaimer about performance. Mutual fund
leaders recently met for a conference in New York, and foremost on our minds
was educating investors about market volatility.
A whole generation of investors has seen nothing but a bull market, which
started in 1982. Except for the 1987 market crash, they've enjoyed a heady
rise. They may expect the same throughout this decade. I've been in the mutual
fund industry for more than 25 years, and I have seen a 5% to 10% market
correction about every five years. The last major correction was in 1990. If
history is any kind of teacher, we are overdue.
The challenge for investors is not to panic when the market takes a
downturn. We have another saying in the industry: "Focus on time, not timing."
Over time, the stock market has proven to be the only investment that
consistently beats inflation. But investing in it takes a long-term view.
Market timing--trying to play the market and "rescue" your money in a
downturn--has proven to be an inefficient strategy for most investors.
The challenge for the mutual fund industry is to keep your trust during a bear
market. The industry has survived and thrived because of its built-in
integrity: By law, we must operate in the best interests of our shareholders.
The mutual fund industry is among the most regulated in the country. The
Investment Company Act of 1940, which governs our industry, protects
shareholders against self-dealing, conflicts of interest, misappropriation of
funds, and other fraudulent activities.
The industry also polices itself. At AIM we have an exhaustive code of ethics
that governs each of our 1,150 employees.
(continued)
<PAGE> 4
A Message from the Chairman
On a very basic level, it boils down to this: We are dealing with your money,
and if we lose your trust, we lose our business.
We are vulnerable to even the hint of impropriety. That's why the mutual fund
industry is set up to avoid even the perception of self-dealing. Fund managers
succeed to the extent that they attract and keep investors. If they lose your
faith, managers ultimately will fail.
Mutual funds are highly liquid investments. Any time you choose, you can pull
out of a fund and receive a redemption price reflective of the market that day.
If you become dissatisfied with a fund manager, it's easy to leave and go
elsewhere. With more than 7,000 funds available, it's a buyers' market.
The next time you read, "Past performance cannot guarantee comparable future
results," think about your own expectations as an investor. We cannot promise
you another year like 1995. But we can promise to manage your money with
honesty and integrity.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
On the following pages is a complete discussion of your Fund's performance and
investment strategy. If you have any questions or comments about this report,
please call our Client Services department at 800-995-4246 during normal
business hours.
2
<PAGE> 5
Management's
Discussion & Analysis
- -------------------------
AIM Summit Fund, Inc.
continues to provide
substantial gains
for Planholders of
Summit Investors Plans.
Total return for
your Fund during the
six-month period
ended April 30, 1996,
was 10.45%.
- -------------------------
AIM SUMMIT FUND, INC. HOLDINGS
FOLLOW FORTUNES OF U.S. INDUSTRIES
MARKET CONDITIONS
Uncertainty and volatility characterized stock market performance during most
of the six-month period ended April 30, 1996.
Investors believed 1995's excellent conditions--robust corporate earnings,
moderate economic growth, and mild inflation--would not continue. To some
extent, they were right. Net income of many U.S. corporations fell in the
fourth quarter of 1995, and economic growth slowed to a feeble annual rate of
0.5%, according to The Wall Street Journal.
Technology stocks, which had been market favorites, were hard hit. Investors
flocked to defensive blue chips and waited for the Federal Reserve Board to
spur the economy by cutting interest rates. The Fed lowered rates in December
and January, but market watchers thought further cuts possible.
In March 1996, everything changed. The Labor Department released the first of
two stunningly strong monthly employment reports and the Dow Jones Industrial
Average fell 171 points in one day. Fed Chairman Alan Greenspan cautioned about
growing wage pressures. Suddenly the economy appeared to be overheating and
analysts worried the Fed might raise interest rates to slow it down.
In less than two weeks, the markets warmed to the benefits of a growing
economy and major averages advanced to near record levels. Green-span
testified before Congress: "The economy has weathered recent sluggishness and
is back on track for steady growth with low inflation."
By April 1996, the picture was mixed. Job growth slowed, but consumer income
and spending rose. Factory orders surged. Corporate earnings were better than
expected, though below year-ago levels. I/B/E/S International, a Wall Street
firm that tabulates corporate earnings estimates, reported that 54% of 1,929
companies surveyed posted earnings better than analysts' expectations. Though
the markets remained skittish, stocks resumed their advance toward record
levels.
YOUR INVESTMENT PORTFOLIO
The Fund's holdings as of April 30, 1996, are markedly different from six
months ago. No sector dominates the portfolio the way technology stocks did at
the close of the last reporting period, when they constituted more than
one-third of the Fund's holdings.
During most of 1995, technology stocks were riding so high it was difficult
to make a bad investment in this sector.
No longer. Winners and losers in high-tech are emerging rapidly, and the good
companies, including Cisco Systems, Inc. and 3Com Corp., continue to get
better. These two firms make sophisticated equipment and provide services for
integrating complex computer networks. They may benefit from a major technology
upgrade occurring within U.S. corporations that are buying more powerful
computers, building global PC networks, and logging onto the Internet.
As holdings in the technology sector were filtered through AIM's
earnings-based investment criteria, the portfolio's composition changed. Let's
take a brief look at three other industries that became more prominent among
the Fund's holdings: health care, retailing, and oil and gas services.
HEALTH CARE: The trend toward consolidation in the health-care sector seems to
be accelerating and spreading. Columbia/HCA Healthcare Corp., for example, is
making daily additions to its hospital chain; it is a Fund holding.
Other portfolio holdings represent an industry that simply did not exist
10 years ago: the dental HMO. Through strategic acquisitions, Atlanta-based
Compdent Corporation, for example, is rapidly expanding from its original base
in the Southeast. It now provides managed dental care to more than 2 million
people in 23 states. Earlier this year, the company announced record earnings.
Competition from HMOs has spurred change among physicians and dentists who are
not in managed-care networks. Practice management expertise is at a premium,
leading to success for such companies as Orthodontic Centers of America, Inc.,
which either manages or has consulting arrangements with private-practice
orthodontists throughout the U.S. The company's stock split two for one early
in 1996.
At the close of the reporting period, patient-
3
<PAGE> 6
Management's
Discussion & Analysis
- -------------------------
No sector dominates
the portfolio the way
technology stocks did
at the close of
the last reporting period,
when they constituted
more than
one-third of
the Fund's holdings.
- -------------------------
care providers represented almost 10% of the portfolio.
RETAILING: In the six months since our previous report, Fund holdings of
retail stores have grown from less than 5% of portfolio holdings to just over
8.5%.
This industry, which had been underperforming for several years, is
profiting from renewed economic growth in the bellwether state of California.
In addition, more sophisticated inventory management and a wave of
consolidations among retailers finally appears to be paying off.
Massive specialty stores known as category killers are still riding high.
PetSmart Inc. and Petco Animal Supplies Inc., are enjoying the upsurge in
spending on pets, which has been growing 15% a year according to Bloomberg.
Warehouse chains are still in the money. Price/Costco, Inc. continues to
expand domestically while exporting the warehouse concept to the UK and South
Korea, among other places.
At the same time, malls have been holding their own because of successful
brands like Liz Claiborne, Inc., sold in traditional department stores such as
Nordstrom's and Dillard's. And The Gap, Inc. reported earnings up 63% for the
first quarter of 1996. The chain now offers variants of its well-known look in
all price categories through specialized divisions.
OIL AND GAS SERVICES: The oil-drilling business was just about moribund for
more than a decade. Now, rising demand for oil is pushing up the price for
operating rigs.
Companies like Reading & Bates Corp., Sonat Offshore Drilling, and Diamond
Offshore Drilling, Inc. are reaping the rewards. These companies operate
technically advanced offshore rigs whose per-diem rent has more than doubled
recently.
This price trend is unlikely to stop, as no new drilling rigs have gone
onstream for years. Earlier this year, Sonat contracted to build the first
deep-water rig built by a U.S. company in a decade.
OUTLOOK FOR THE FUTURE
All signs point to continued stock market volatility. Until investors gain a
clearer picture of the momentum of the U.S. economy, financial markets will
probably continue to vacillate. Growth in specific industries--including
technology, health care, and retail--is expected to continue. One possible
dampener: a rise in interest rates, which would increase the cost of borrowing
and erode profits.
What should Summit Investors Planholders expect from the rest of 1996? With
the markets in a constant state of flux, it is easier to discuss what not to
expect. There is no guarantee AIM Summit Fund will return 35.14%, as it did in
1995. Historically, the stock market has generated an average total return of
about 10%.
While we cannot guarantee returns, we can tell you that AIM Summit Fund, with
343 holdings, is well diversified, a key Fund strategy for dealing with market
volatility. Keep in mind, the Fund's portfolio composition may change and there
is no assurance the Fund will continue to hold specific securities.
Besides this diversification strategy, portfolio managers follow a
disciplined investment strategy that focuses on earnings growth as the foremost
criterion for stock selection. This time-tested strategy has led the Fund to a
10-year average annual total return of 13.30% as of April 30, 1996.
- -------------------------------------------------------------------------------
PORTFOLIO HOLDINGS (AS OF APRIL 30, 1996)
<TABLE>
<CAPTION>
TOP 10 SECURITIES TOP 10 INDUSTRIES
<S> <C>
1. NIKE, Inc. 1. Medical - Patient Services
2. Dover Corp. 2. Retail - Stores
3. Safeway Inc. 3. Computer Software/Services
4. UAL Corp. 4. Medical - Drugs
5. Bristol-Myers Squibb Co. 5. Finance - Consumer Credit
6. Halliburton Co. 6. Telecommunications
7. Williams Companies, Inc. (The) 7. Computer Networking
8. McDonnell Douglas Corp. 8. Semiconductors
9. Exxon Corp. 9. Oil & Gas - Services
10. Eastman Kodak Co. 10. Computer Peripherals
</TABLE>
- -------------------------------------------------------------------------------
4
<PAGE> 7
Financials
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
COMMON STOCKS-97.78%
ADVERTISING/BROADCASTING-0.39%
30,000 American Radio Systems Corp.(a) $ 1,012,500
- ---------------------------------------------------------------------------------------------
30,000 Chancellor Corp.-Class A(a) 765,000
- ---------------------------------------------------------------------------------------------
78,750 Infinity Broadcasting Corp.(a) 2,283,750
- ---------------------------------------------------------------------------------------------
36,000 Paxson Communications Corp.(a) 535,500
- ---------------------------------------------------------------------------------------------
4,596,750
- ---------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE-2.04%
26,000 Boeing Co. (The) 2,135,250
- ---------------------------------------------------------------------------------------------
41,500 General Dynamics Corp. 2,619,688
- ---------------------------------------------------------------------------------------------
110,000 McDonnell Douglas Corp. 10,615,000
- ---------------------------------------------------------------------------------------------
79,000 United Technologies Corp. 8,729,500
- ---------------------------------------------------------------------------------------------
24,099,438
- ---------------------------------------------------------------------------------------------
AIRLINES-1.25%
65,000 Southwest Airlines Co. 1,933,750
- ---------------------------------------------------------------------------------------------
60,000 UAL Corp.(a) 12,870,000
- ---------------------------------------------------------------------------------------------
14,803,750
- ---------------------------------------------------------------------------------------------
APPLIANCES-0.15%
60,000 Newell Co. 1,710,000
- ---------------------------------------------------------------------------------------------
AUTOMOBILE (MANUFACTURERS)-0.51%
50,000 Chrysler Corp. 3,137,500
- ---------------------------------------------------------------------------------------------
80,000 Ford Motor Co. 2,870,000
- ---------------------------------------------------------------------------------------------
6,007,500
- ---------------------------------------------------------------------------------------------
BANKING-1.45%
35,000 Bank of Boston Corp. 1,693,125
- ---------------------------------------------------------------------------------------------
137,700 Bank of New York Co., Inc. 6,678,450
- ---------------------------------------------------------------------------------------------
87,152 Chase Manhattan Corp. 6,002,595
- ---------------------------------------------------------------------------------------------
12,700 NationsBank Corp. 1,012,825
- ---------------------------------------------------------------------------------------------
57,000 PNC Bank Corp. 1,724,250
- ---------------------------------------------------------------------------------------------
17,111,245
- ---------------------------------------------------------------------------------------------
BEVERAGES-0.25%
47,000 PepsiCo Inc. 2,984,500
- ---------------------------------------------------------------------------------------------
BIOTECHNOLOGY-0.59%
45,000 AMGEN, Inc.(a) 2,587,500
- ---------------------------------------------------------------------------------------------
78,000 Guidant Corp. 4,377,750
- ---------------------------------------------------------------------------------------------
6,965,250
- ---------------------------------------------------------------------------------------------
BUILDING MATERIALS-0.26%
40,000 Georgia-Pacific Corp. 3,110,000
- ---------------------------------------------------------------------------------------------
BUSINESS SERVICES-1.30%
31,000 AccuStaff Inc.(a) 922,250
- ---------------------------------------------------------------------------------------------
5,100 APAC Teleservices, Inc.(a) 395,250
- ---------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 8
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Business Services-continued
11,500 Career Horizons, Inc.(a) $ 405,375
- ---------------------------------------------------------------------------------------------
37,600 CUC International, Inc.(a) 1,236,100
- ---------------------------------------------------------------------------------------------
125,400 Equifax, Inc. 3,072,300
- ---------------------------------------------------------------------------------------------
60,500 Healthcare COMPARE Corp. 2,851,063
- ---------------------------------------------------------------------------------------------
61,500 Manpower Inc. 2,275,500
- ---------------------------------------------------------------------------------------------
138,900 Olsten Corp. 4,219,088
- ---------------------------------------------------------------------------------------------
15,376,926
- ---------------------------------------------------------------------------------------------
CHEMICALS-1.40%
50,000 Agrium Inc. (Canada) 643,750
- ---------------------------------------------------------------------------------------------
200,000 Goodrich (B.F.) Co. (The) 7,950,000
- ---------------------------------------------------------------------------------------------
120,000 Rohm & Haas Co. 7,965,000
- ---------------------------------------------------------------------------------------------
16,558,750
- ---------------------------------------------------------------------------------------------
CHEMICALS (SPECIALTY)-0.20%
110,200 Airgas, Inc.(a) 2,369,300
- ---------------------------------------------------------------------------------------------
COMPUTER MINI/PCS-1.69%
68,000 COMPAQ Computer Corp.(a) 3,170,500
- ---------------------------------------------------------------------------------------------
61,600 Dell Computer Corp.(a) 2,825,900
- ---------------------------------------------------------------------------------------------
26,700 Digital Equipment Corp.(a) 1,595,325
- ---------------------------------------------------------------------------------------------
65,000 Gateway 2000 Inc.(a) 2,266,875
- ---------------------------------------------------------------------------------------------
30,000 Hewlett-Packard Co. 3,176,250
- ---------------------------------------------------------------------------------------------
5,600 Stratus Computer, Inc.(a) 157,500
- ---------------------------------------------------------------------------------------------
126,000 Sun Microsystems, Inc.(a) 6,835,500
- ---------------------------------------------------------------------------------------------
20,027,850
- ---------------------------------------------------------------------------------------------
COMPUTER NETWORKING-4.76%
116,000 Ascend Communications, Inc.(a) 7,134,000
- ---------------------------------------------------------------------------------------------
80,000 Cabletron Systems, Inc.(a) 6,030,000
- ---------------------------------------------------------------------------------------------
55,050 Cascade Communications Corp.(a) 5,518,763
- ---------------------------------------------------------------------------------------------
156,000 Cisco Systems, Inc.(a) 8,092,500
- ---------------------------------------------------------------------------------------------
187,000 ECI Telecommunications Ltd. (Israel) 4,885,375
- ---------------------------------------------------------------------------------------------
120,000 FORE Systems, Inc.(a) 9,480,000
- ---------------------------------------------------------------------------------------------
143,800 Gandalf Technologies, Inc.(a) 2,552,450
- ---------------------------------------------------------------------------------------------
67,100 Madge Networks N.V.(a) (Netherlands) 1,979,450
- ---------------------------------------------------------------------------------------------
73,100 Newbridge Networks Corp.(a) (Canada) 4,705,813
- ---------------------------------------------------------------------------------------------
12,800 Shiva Corp.(a) 764,800
- ---------------------------------------------------------------------------------------------
19,000 Sync Research, Inc.(a) 375,250
- ---------------------------------------------------------------------------------------------
103,800 3Com Corp.(a) 4,787,775
- ---------------------------------------------------------------------------------------------
56,306,176
- ---------------------------------------------------------------------------------------------
COMPUTER PERIPHERALS-1.81%
74,000 Adaptec Inc.(a) 4,255,000
- ---------------------------------------------------------------------------------------------
52,900 Komag, Inc.(a) 1,772,150
- ---------------------------------------------------------------------------------------------
29,200 Microchip Technology, Inc.(a) 744,600
- ---------------------------------------------------------------------------------------------
75,000 Seagate Technology, Inc.(a) 4,350,000
- ---------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Computer Peripherals-continued
94,000 Storage Technology Corp.(a) $ 2,890,500
- ---------------------------------------------------------------------------------------------
47,000 U.S. Robotics Corp.(a) 7,355,500
- ---------------------------------------------------------------------------------------------
21,367,750
- ---------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES-8.40%
91,900 BMC Software, Inc.(a) 5,594,412
- ---------------------------------------------------------------------------------------------
140,650 Cadence Design Systems, Inc.(a) 7,348,962
- ---------------------------------------------------------------------------------------------
106,300 Ceridian Corp.(a) 5,075,825
- ---------------------------------------------------------------------------------------------
131,300 Computer Associates International, Inc. 9,634,137
- ---------------------------------------------------------------------------------------------
190,400 Computervision Corp.(a) 2,308,600
- ---------------------------------------------------------------------------------------------
35,300 CSG Systems International, Inc.(a) 1,129,600
- ---------------------------------------------------------------------------------------------
67,500 DST Systems, Inc.(a) 2,480,625
- ---------------------------------------------------------------------------------------------
28,900 First Data Corp. 2,196,400
- ---------------------------------------------------------------------------------------------
60,000 HBO & Co. 7,125,000
- ---------------------------------------------------------------------------------------------
16,500 HPR, Inc.(a) 709,500
- ---------------------------------------------------------------------------------------------
15,000 Imnet Systems, Inc.(a) 495,000
- ---------------------------------------------------------------------------------------------
16,300 Intuit, Inc.(a) 847,600
- ---------------------------------------------------------------------------------------------
35,400 McAfee Associates, Inc.(a) 2,168,250
- ---------------------------------------------------------------------------------------------
77,000 Microsoft Corp.(a) 8,729,875
- ---------------------------------------------------------------------------------------------
5,300 National Data Corp. 186,825
- ---------------------------------------------------------------------------------------------
68,900 Network General Corp.(a) 3,040,212
- ---------------------------------------------------------------------------------------------
189,300 Oracle Corp.(a) 6,388,875
- ---------------------------------------------------------------------------------------------
50,000 PairGain Technologies, Inc.(a) 4,775,000
- ---------------------------------------------------------------------------------------------
165,400 Parametric Technology Corp.(a) 6,657,350
- ---------------------------------------------------------------------------------------------
50,000 Physician Computer Network, Inc.(a) 562,500
- ---------------------------------------------------------------------------------------------
39,000 Rational Software Corp.(a) 2,081,625
- ---------------------------------------------------------------------------------------------
24,000 Red Brick Systems, Inc.(a) 1,422,000
- ---------------------------------------------------------------------------------------------
5,100 Shared Medical Systems Corp. 349,350
- ---------------------------------------------------------------------------------------------
42,000 SoftKey International, Inc.(a) 1,176,000
- ---------------------------------------------------------------------------------------------
66,200 Sterling Commerce, Inc.(a) 2,317,000
- ---------------------------------------------------------------------------------------------
39,000 Sterling Software, Inc.(a) 3,032,250
- ---------------------------------------------------------------------------------------------
33,900 SunGard Data Systems, Inc.(a) 1,127,175
- ---------------------------------------------------------------------------------------------
30,500 Symantec Corp.(a) 491,812
- ---------------------------------------------------------------------------------------------
168,200 Synopsys, Inc.(a) 6,938,250
- ---------------------------------------------------------------------------------------------
120,000 S3, Inc.(a) 1,695,000
- ---------------------------------------------------------------------------------------------
7,200 Transition Systems, Inc.(a) 174,600
- ---------------------------------------------------------------------------------------------
33,000 Verity, Inc.(a) 1,134,375
- ---------------------------------------------------------------------------------------------
99,393,985
- ---------------------------------------------------------------------------------------------
CONGLOMERATES-0.56%
21,100 Textron Inc. 1,809,325
- ---------------------------------------------------------------------------------------------
90,600 Tyco International Ltd. 3,499,425
- ---------------------------------------------------------------------------------------------
63,700 U.S. Industries, Inc.(a) 1,337,700
- ---------------------------------------------------------------------------------------------
6,646,450
- ---------------------------------------------------------------------------------------------
CONTAINERS-0.22%
100,000 First Brands Corp. 2,650,000
- ---------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
COSMETICS & TOILETRIES-0.99%
40,000 Colgate-Palmolive Co. $ 3,065,000
- ---------------------------------------------------------------------------------------------
208,200 General Nutrition, Inc.(a) 4,059,900
- ---------------------------------------------------------------------------------------------
54,100 Gillette Co. (The) 2,921,400
- ---------------------------------------------------------------------------------------------
20,000 Procter & Gamble Co.(a) 1,690,000
- ---------------------------------------------------------------------------------------------
11,736,300
- ---------------------------------------------------------------------------------------------
ELECTRIC POWER-0.32%
150,000 Illinova Corp. 3,825,000
- ---------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS-0.98%
144,300 Amphenol Corp.(a) 3,805,912
- ---------------------------------------------------------------------------------------------
47,900 Anixter International, Inc.(a) 838,250
- ---------------------------------------------------------------------------------------------
31,400 Berg Electronics Corp.(a) 836,025
- ---------------------------------------------------------------------------------------------
29,800 BMC Industries, Inc. 797,150
- ---------------------------------------------------------------------------------------------
33,100 Cable Design Technologies Corp.(a) 1,092,300
- ---------------------------------------------------------------------------------------------
39,200 Symbol Technologies, Inc.(a) 1,813,000
- ---------------------------------------------------------------------------------------------
71,900 Thermo Instrument Systems, Inc.(a) 2,372,700
- ---------------------------------------------------------------------------------------------
11,555,337
- ---------------------------------------------------------------------------------------------
ELECTRONIC/PC DISTRIBUTORS-0.53%
40,000 Arrow Electronics, Inc.(a) 2,005,000
- ---------------------------------------------------------------------------------------------
80,000 Avnet, Inc. 4,220,000
- ---------------------------------------------------------------------------------------------
6,225,000
- ---------------------------------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-1.59%
125,000 Bear Stearns Companies, Inc. (The) 3,140,625
- ---------------------------------------------------------------------------------------------
44,600 Franklin Resources, Inc. 2,553,350
- ---------------------------------------------------------------------------------------------
50,000 Imperial Credit Industries, Inc.(a) 1,300,000
- ---------------------------------------------------------------------------------------------
50,000 Merrill Lynch & Co., Inc. 3,018,750
- ---------------------------------------------------------------------------------------------
139,000 Morgan Stanley Group, Inc. 6,984,750
- ---------------------------------------------------------------------------------------------
44,000 Salomon Inc. 1,787,500
- ---------------------------------------------------------------------------------------------
18,784,975
- ---------------------------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-5.30%
140,000 American Express Co. 6,790,000
- ---------------------------------------------------------------------------------------------
49,400 Beneficial Corp. 2,729,350
- ---------------------------------------------------------------------------------------------
31,600 Capital One Financial Corp. 932,200
- ---------------------------------------------------------------------------------------------
30,000 Cityscape Financial Corp.(a) 1,312,500
- ---------------------------------------------------------------------------------------------
75,000 Countywide Credit Industries, Inc. 1,621,875
- ---------------------------------------------------------------------------------------------
92,600 Credit Acceptance Corp. 1,736,250
- ---------------------------------------------------------------------------------------------
33,000 Federal Home Loan Mortgage Corp. 2,751,375
- ---------------------------------------------------------------------------------------------
55,000 Federal National Mortgage Association 1,684,375
- ---------------------------------------------------------------------------------------------
96,700 First USA, Inc. 5,439,375
- ---------------------------------------------------------------------------------------------
192,300 Green Tree Financial Corp. 6,490,125
- ---------------------------------------------------------------------------------------------
78,000 Household International, Inc. 5,391,750
- ---------------------------------------------------------------------------------------------
284,000 MBNA Corp. 8,058,500
- ---------------------------------------------------------------------------------------------
92,700 Medaphis Corp. 4,275,787
- ---------------------------------------------------------------------------------------------
65,200 Money Store, Inc. (The) 1,646,300
- ---------------------------------------------------------------------------------------------
43,600 Olympic Financial Ltd.(a) 970,100
- ---------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Finance (Consumer Credit)-continued
42,000 PMI Group, Inc. (The) $ 1,785,000
- ---------------------------------------------------------------------------------------------
30,000 PMT Services, Inc.(a) 866,250
- ---------------------------------------------------------------------------------------------
94,100 Student Loan Marketing Association 6,892,825
- ---------------------------------------------------------------------------------------------
25,000 SunAmerica, Inc. 1,362,500
- ---------------------------------------------------------------------------------------------
62,736,437
- ---------------------------------------------------------------------------------------------
FOOD PROCESSING-0.48%
70,000 ConAgra, Inc. 2,703,750
- ---------------------------------------------------------------------------------------------
47,600 Lancaster Colony Corp. 1,606,500
- ---------------------------------------------------------------------------------------------
41,300 Richfood Holdings, Inc. 1,347,412
- ---------------------------------------------------------------------------------------------
5,657,662
- ---------------------------------------------------------------------------------------------
FUNERAL SERVICES-0.67%
150,000 Service Corp. International 7,968,750
- ---------------------------------------------------------------------------------------------
HOTELS/MOTELS-0.78%
180,000 Hospitality Franchise Systems, Inc.(a) 9,247,500
- ---------------------------------------------------------------------------------------------
INSURANCE (LIFE & HEALTH)-0.55%
32,000 Compdent Corp.(a) 1,416,000
- ---------------------------------------------------------------------------------------------
50,000 Riscorp, Inc.(a) 1,181,250
- ---------------------------------------------------------------------------------------------
123,200 United Companies Financial Corp. 3,942,400
- ---------------------------------------------------------------------------------------------
6,539,650
- ---------------------------------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY)-2.24%
34,000 ACE, Ltd. 1,496,000
- ---------------------------------------------------------------------------------------------
63,000 Aetna Life & Casualty Co. 4,488,750
- ---------------------------------------------------------------------------------------------
50,000 CIGNA Corp. 5,668,750
- ---------------------------------------------------------------------------------------------
130,000 MGIC Investment Corp. 7,052,500
- ---------------------------------------------------------------------------------------------
74,600 TIG Holdings, Inc. 2,265,975
- ---------------------------------------------------------------------------------------------
90,300 Travelers Group, Inc. 5,553,450
- ---------------------------------------------------------------------------------------------
26,525,425
- ---------------------------------------------------------------------------------------------
LEISURE & RECREATION-1.58%
63,800 Callaway Golf Co. 1,706,650
- ---------------------------------------------------------------------------------------------
100,000 Carnival Cruise Lines, Inc.- Class A 2,900,000
- ---------------------------------------------------------------------------------------------
130,000 Eastman Kodak Co. 9,945,000
- ---------------------------------------------------------------------------------------------
44,600 Harley-Davidson, Inc. 1,967,975
- ---------------------------------------------------------------------------------------------
62,500 Mattel, Inc. 1,625,000
- ---------------------------------------------------------------------------------------------
21,700 Speedway Motorsports, Inc.(a) 580,475
- ---------------------------------------------------------------------------------------------
18,725,100
- ---------------------------------------------------------------------------------------------
MACHINE TOOLS-0.11%
35,000 Kennametal Inc. 1,325,625
- ---------------------------------------------------------------------------------------------
MACHINERY (HEAVY)-1.72%
270,000 Dover Corp. 13,905,000
- ---------------------------------------------------------------------------------------------
160,000 Harnischfeger Industries, Inc. 6,480,000
- ---------------------------------------------------------------------------------------------
20,385,000
- ---------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
MACHINERY (MISCELLANEOUS)-0.87%
15,200 American Standard Inc.(a) $ 429,400
- ---------------------------------------------------------------------------------------------
53,600 Pall Corp. 1,500,800
- ---------------------------------------------------------------------------------------------
19,200 Pentair, Inc. 523,200
- ---------------------------------------------------------------------------------------------
127,500 Thermo Electron Corp.(a) 7,857,187
- ---------------------------------------------------------------------------------------------
10,310,587
- ---------------------------------------------------------------------------------------------
MEDICAL (DRUGS)-6.13%
100,000 Abbott Laboratories 4,062,500
- ---------------------------------------------------------------------------------------------
45,000 American Home Products Corp. 4,747,500
- ---------------------------------------------------------------------------------------------
53,000 Amerisource Healthcorp(a) 1,908,000
- ---------------------------------------------------------------------------------------------
141,000 Bristol-Meyers Squibb Co. 11,597,250
- ---------------------------------------------------------------------------------------------
143,500 Cardinal Health, Inc. 9,004,625
- ---------------------------------------------------------------------------------------------
93,000 Elan Corp., PLC-ADR(a) (Ireland) 6,149,625
- ---------------------------------------------------------------------------------------------
20,000 Express Scripts, Inc.-Class A(a) 990,000
- ---------------------------------------------------------------------------------------------
132,700 ICN Pharmaceuticals, Inc. 2,985,750
- ---------------------------------------------------------------------------------------------
35,000 Johnson & Johnson 3,237,500
- ---------------------------------------------------------------------------------------------
9,500 Jones Medical Industries, Inc. 496,375
- ---------------------------------------------------------------------------------------------
24,000 Merck & Co., Inc. 1,452,000
- ---------------------------------------------------------------------------------------------
137,000 Mylan Laboratories, Inc. 2,671,500
- ---------------------------------------------------------------------------------------------
13,600 Parexel International Corp. 669,800
- ---------------------------------------------------------------------------------------------
25,000 Pfizer, Inc. 1,721,875
- ---------------------------------------------------------------------------------------------
88,000 Pharmacia & Upjohn, Inc. 3,366,000
- ---------------------------------------------------------------------------------------------
114,000 Rhone-Poulenc Rorer, Inc. 7,068,000
- ---------------------------------------------------------------------------------------------
94,700 Schering-Plough Corp. 5,433,413
- ---------------------------------------------------------------------------------------------
105,000 Watson Pharmaceuticals, Inc.(a) 4,987,500
- ---------------------------------------------------------------------------------------------
72,549,213
- ---------------------------------------------------------------------------------------------
MEDICAL (INSTRUMENTS/PRODUCTS)-2.54%
7,500 Arterial Vascular Engine(a) 330,000
- ---------------------------------------------------------------------------------------------
83,800 Baxter International, Inc. 3,708,150
- ---------------------------------------------------------------------------------------------
36,000 Becton, Dickinson and Co. 2,902,500
- ---------------------------------------------------------------------------------------------
82,500 Biomet Inc.(a) 1,216,875
- ---------------------------------------------------------------------------------------------
130,000 Boston Scientific Corp.(a) 5,606,250
- ---------------------------------------------------------------------------------------------
35,000 Cardiothoracic Systems, Inc.(a) 826,875
- ---------------------------------------------------------------------------------------------
37,000 Conmed Corp.(a) 1,100,750
- ---------------------------------------------------------------------------------------------
35,500 DENTSPLY International, Inc. 1,482,125
- ---------------------------------------------------------------------------------------------
9,200 Endosonics Corp.(a) 159,850
- ---------------------------------------------------------------------------------------------
52,900 Idexx Laboratories, Inc.(a) 2,354,050
- ---------------------------------------------------------------------------------------------
88,000 Medtronic, Inc. 4,675,000
- ---------------------------------------------------------------------------------------------
65,200 Nellcor Puritan Bennett, Inc.(a) 3,194,800
- ---------------------------------------------------------------------------------------------
20,000 Physician Sales & Services, Inc.(a) 540,000
- ---------------------------------------------------------------------------------------------
16,300 Quintiles Transnational Corp.(a) 1,193,975
- ---------------------------------------------------------------------------------------------
25,000 Spine-Tech, Inc. 725,000
- ---------------------------------------------------------------------------------------------
30,016,200
- ---------------------------------------------------------------------------------------------
MEDICAL (PATIENT SERVICES)-9.34%
137,800 Apria Healthcare Group, Inc.(a) 4,685,200
- ---------------------------------------------------------------------------------------------
105,000 Columbia/HCA Healthcare Corp. 5,578,125
- ---------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Medical (Patient Services)-continued
94,000 Community Health Systems, Inc.(a) $ 4,077,250
- ---------------------------------------------------------------------------------------------
79,800 Genesis Health Ventures, Inc.(a) 2,364,075
- ---------------------------------------------------------------------------------------------
90,000 Health Care & Retirement Corp.(a) 3,318,750
- ---------------------------------------------------------------------------------------------
180,000 Health Management Associates, Inc.-Class A(a) 5,760,000
- ---------------------------------------------------------------------------------------------
80,000 Healthsource, Inc.(a) 2,730,000
- ---------------------------------------------------------------------------------------------
250,000 HEALTHSOUTH Corp.(a) 9,281,250
- ---------------------------------------------------------------------------------------------
85,000 Lincare Holdings Inc.(a) 3,299,062
- ---------------------------------------------------------------------------------------------
64,400 Living Centers of America, Inc.(a) 2,382,800
- ---------------------------------------------------------------------------------------------
77,100 Manor Care, Inc 3,093,638
- ---------------------------------------------------------------------------------------------
157,800 Medpartners/Mullikin, Inc.(a) 4,556,475
- ---------------------------------------------------------------------------------------------
25,000 Occusystems, Inc.(a) 725,000
- ---------------------------------------------------------------------------------------------
87,900 Omnicare Inc. 5,274,000
- ---------------------------------------------------------------------------------------------
130,000 OrNda HealthCorp(a) 3,575,000
- ---------------------------------------------------------------------------------------------
26,200 Orthodontic Centers of America Inc.(a) 1,034,900
- ---------------------------------------------------------------------------------------------
142,500 Oxford Health Plans, Inc.(a) 7,196,250
- ---------------------------------------------------------------------------------------------
17,700 Pacificare Health Systems, Inc.-Class A(a) 1,433,700
- ---------------------------------------------------------------------------------------------
19,200 Pacificare Health Systems, Inc.-Class B(a) 1,610,400
- ---------------------------------------------------------------------------------------------
30,700 PhyCor, Inc.(a) 1,511,975
- ---------------------------------------------------------------------------------------------
30,000 Physician Reliance Network, Inc.(a) 1,297,500
- ---------------------------------------------------------------------------------------------
206,900 Sybron International Corp.(a) 5,224,225
- ---------------------------------------------------------------------------------------------
420,000 Tenet Healthcare Corp. 8,610,000
- ---------------------------------------------------------------------------------------------
33,100 Total Renal Care Holdings, Inc.(a) 1,266,075
- ---------------------------------------------------------------------------------------------
180,000 U.S. Healthcare, Inc. 9,382,500
- ---------------------------------------------------------------------------------------------
50,000 United Healthcare Corp. 2,925,000
- ---------------------------------------------------------------------------------------------
200 Universal Health Services, Inc.(a) 11,100
- ---------------------------------------------------------------------------------------------
247,800 Vencor, Inc.(a) 8,363,250
- ---------------------------------------------------------------------------------------------
110,567,500
- ---------------------------------------------------------------------------------------------
METALS-0.76%
133,400 Illinois Tool Works, Inc. 8,971,150
- ---------------------------------------------------------------------------------------------
NATURAL GAS PIPELINE-0.91%
210,000 Williams Companies, Inc. (The) 10,736,250
- ---------------------------------------------------------------------------------------------
OFFICE AUTOMATION-0.76%
147,600 Danka Business Systems PLC-ADR (United Kingdom) 7,084,800
- ---------------------------------------------------------------------------------------------
13,000 Xerox Corp. 1,904,500
- ---------------------------------------------------------------------------------------------
8,989,300
- ---------------------------------------------------------------------------------------------
OFFICE PRODUCTS-0.50%
31,000 Avery-Dennison Corp. 1,767,000
- ---------------------------------------------------------------------------------------------
89,300 Reynolds & Reynolds Co.-Class A 4,130,125
- ---------------------------------------------------------------------------------------------
5,897,125
- ---------------------------------------------------------------------------------------------
OIL & GAS (DRILLING)-0.41%
200,000 Reading & Bates Corp.(a) 4,900,000
- ---------------------------------------------------------------------------------------------
OIL & GAS (EXPLORATION & PRODUCTION)-0.27%
9,300 Belco Oil & Gas Corp.(a) 268,538
- ---------------------------------------------------------------------------------------------
75,000 Coastal Corp. 2,971,875
- ---------------------------------------------------------------------------------------------
3,240,413
- ---------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
OIL & GAS (SERVICES)-2.88%
80,000 British Petroleum Co. PLC-ADR (United Kingdom) $ 8,740,000
- ---------------------------------------------------------------------------------------------
15,000 Chesapeake Energy Corp.(a) 1,061,250
- ---------------------------------------------------------------------------------------------
75,000 Consolidated Natural Gas Co. 3,506,250
- ---------------------------------------------------------------------------------------------
120,000 Exxon Corp. 10,200,000
- ---------------------------------------------------------------------------------------------
44,800 Louisiana Land & Exploration Co. 2,424,800
- ---------------------------------------------------------------------------------------------
23,000 Mobil Corp. 2,645,000
- ---------------------------------------------------------------------------------------------
100,000 Sonat Offshore Drilling Inc. 5,487,500
- ---------------------------------------------------------------------------------------------
34,064,800
- ---------------------------------------------------------------------------------------------
OIL EQUIPMENT & SUPPLIES-1.93%
132,600 Diamond Offshore Drilling, Inc.(a) 6,596,850
- ---------------------------------------------------------------------------------------------
100,000 Dresser Industries, Inc. 3,187,500
- ---------------------------------------------------------------------------------------------
190,000 Halliburton Co. 10,901,250
- ---------------------------------------------------------------------------------------------
24,900 Schlumberger Ltd. 2,197,425
- ---------------------------------------------------------------------------------------------
22,883,025
- ---------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS-1.05%
75,000 International Paper Co. 2,990,625
- ---------------------------------------------------------------------------------------------
85,000 Kimberly-Clark Corp. 6,173,125
- ---------------------------------------------------------------------------------------------
60,000 Union Camp Corp. 3,262,500
- ---------------------------------------------------------------------------------------------
12,426,250
- ---------------------------------------------------------------------------------------------
PUBLISHING-0.98%
50,000 Gannett Co., Inc. 3,418,750
- ---------------------------------------------------------------------------------------------
16,400 Gartner Group, Inc.(a) 561,700
- ---------------------------------------------------------------------------------------------
47,100 New York Times Co. 1,530,750
- ---------------------------------------------------------------------------------------------
17,600 Times Mirror Co. (The) 750,200
- ---------------------------------------------------------------------------------------------
76,000 Tribune Co. 5,301,000
- ---------------------------------------------------------------------------------------------
11,562,400
- ---------------------------------------------------------------------------------------------
RESTAURANTS-0.99%
15,000 Cracker Barrel Old Country Store 354,375
- ---------------------------------------------------------------------------------------------
250,000 Darden Restaurants, Inc. 3,437,500
- ---------------------------------------------------------------------------------------------
37,100 Lone Star Steakhouse & Saloon(a) 1,535,012
- ---------------------------------------------------------------------------------------------
60,000 McDonald's Corp. 2,872,500
- ---------------------------------------------------------------------------------------------
88,500 Outback Steakhouse, Inc.(a) 3,551,063
- ---------------------------------------------------------------------------------------------
11,750,450
- ---------------------------------------------------------------------------------------------
RETAIL (FOOD & DRUG)-2.20%
71,500 Albertson's, Inc. 2,752,750
- ---------------------------------------------------------------------------------------------
67,600 Eckerd Corp.(a) 3,227,900
- ---------------------------------------------------------------------------------------------
7,600 Hannaford Bros. Co. 212,800
- ---------------------------------------------------------------------------------------------
66,000 Kroger Co.(a) 2,714,250
- ---------------------------------------------------------------------------------------------
55,000 Rite Aid Corp. 1,629,375
- ---------------------------------------------------------------------------------------------
400,000 Safeway Inc.(a) 13,500,000
- ---------------------------------------------------------------------------------------------
61,900 Vons Companies, Inc. (The) 1,980,800
- ---------------------------------------------------------------------------------------------
26,017,875
- ---------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
RETAIL (STORES)-8.51%
60,000 AutoZone, Inc(a) $ 2,190,000
- ---------------------------------------------------------------------------------------------
8,500 Barnett, Inc.(a) 199,750
- ---------------------------------------------------------------------------------------------
52,500 Bed, Bath & Beyond, Inc.(a) 3,100,781
- ---------------------------------------------------------------------------------------------
23,900 CDW Computer Centers, Inc.(a) 1,849,262
- ---------------------------------------------------------------------------------------------
92,000 Circuit City Stores, Inc. 2,921,000
- ---------------------------------------------------------------------------------------------
139,800 Consolidated Stores Corp.(a) 5,032,800
- ---------------------------------------------------------------------------------------------
49,400 Corporate Express, Inc.(a) 1,846,325
- ---------------------------------------------------------------------------------------------
45,000 Dayton-Hudson Corp. 4,297,500
- ---------------------------------------------------------------------------------------------
30,000 Dillard Department Stores, Inc. 1,203,750
- ---------------------------------------------------------------------------------------------
42,375 Dollar General Corp. 1,117,640
- ---------------------------------------------------------------------------------------------
118,200 Gap, Inc. (The) 3,560,775
- ---------------------------------------------------------------------------------------------
6,500 Global DirectMail Corp.(a) 255,125
- ---------------------------------------------------------------------------------------------
43,400 Gymboree Corp.(a) 1,122,975
- ---------------------------------------------------------------------------------------------
46,000 Heilig-Meyers Co. 948,750
- ---------------------------------------------------------------------------------------------
125,000 Home Depot, Inc. 5,921,875
- ---------------------------------------------------------------------------------------------
50,000 Kohl's Corp.(a) 1,718,750
- ---------------------------------------------------------------------------------------------
79,500 Men's Wearhouse, Inc. (The)(a) 2,941,500
- ---------------------------------------------------------------------------------------------
16,700 Mercantile Stores Co., Inc. 1,041,662
- ---------------------------------------------------------------------------------------------
31,700 Meyer (Fred), Inc.(a) 911,375
- ---------------------------------------------------------------------------------------------
146,000 Micro Warehouse, Inc.(a) 6,278,000
- ---------------------------------------------------------------------------------------------
100,000 Nordstrom, Inc. 5,087,500
- ---------------------------------------------------------------------------------------------
18,100 Oakley, Inc.(a) 832,600
- ---------------------------------------------------------------------------------------------
187,900 Office Depot, Inc.(a) 4,204,263
- ---------------------------------------------------------------------------------------------
25,000 Orchard Supply Hardware Stores Corp.(a) 665,625
- ---------------------------------------------------------------------------------------------
120,000 Pep Boys-Manny Moe & Jack 4,005,000
- ---------------------------------------------------------------------------------------------
40,000 Petco Animal Supplies, Inc. 1,150,000
- ---------------------------------------------------------------------------------------------
89,100 PetSmart, Inc.(a) 3,953,813
- ---------------------------------------------------------------------------------------------
179,900 Price/Costco, Inc. 3,418,100
- ---------------------------------------------------------------------------------------------
25,000 Ross Stores, Inc. 862,500
- ---------------------------------------------------------------------------------------------
97,100 Sports Authority, Inc. (The)(a) 2,888,725
- ---------------------------------------------------------------------------------------------
352,200 Staples, Inc.(a) 6,691,800
- ---------------------------------------------------------------------------------------------
186,400 Sunglass Hut International, Inc.(a) 5,452,200
- ---------------------------------------------------------------------------------------------
28,600 Talbots, Inc. 822,250
- ---------------------------------------------------------------------------------------------
66,500 Tech Data Corp.(a) 1,296,750
- ---------------------------------------------------------------------------------------------
6,500 Tiffany & Co. 424,125
- ---------------------------------------------------------------------------------------------
48,400 U.S. Office Products Co.(a) 1,742,400
- ---------------------------------------------------------------------------------------------
129,900 Viking Office Products Inc.(a) 7,712,813
- ---------------------------------------------------------------------------------------------
45,200 Waban, Inc.(a) 1,107,400
- ---------------------------------------------------------------------------------------------
100,777,459
- ---------------------------------------------------------------------------------------------
SCIENTIFIC INSTRUMENTS-0.54%
110,800 Varian Associates, Inc. 6,329,450
- ---------------------------------------------------------------------------------------------
SEMICONDUCTORS-3.05%
30,200 Altera Corp.(a) 1,593,050
- ---------------------------------------------------------------------------------------------
164,250 Analog Devices, Inc.(a) 4,229,437
- ---------------------------------------------------------------------------------------------
112,900 Atmel Corp.(a) 4,516,000
- ---------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Semiconductors-continued
90,000 Intel Corp. $ 6,097,500
- ---------------------------------------------------------------------------------------------
122,200 International Rectifier Corp.(a) 2,749,500
- ---------------------------------------------------------------------------------------------
99,000 KLA Instruments Corp.(a) 2,858,625
- ---------------------------------------------------------------------------------------------
39,300 Lattice Semiconductor Corp.(a) 1,287,075
- ---------------------------------------------------------------------------------------------
28,900 Linear Technology Corp.(a) 993,438
- ---------------------------------------------------------------------------------------------
67,800 LSI Logic Corp.(a) 2,440,800
- ---------------------------------------------------------------------------------------------
36,600 MEMC Electronic Materials, Inc.(a) 1,825,425
- ---------------------------------------------------------------------------------------------
45,100 SCI Systems, Inc.(a) 1,933,662
- ---------------------------------------------------------------------------------------------
33,400 SGS Thomson Microelectronics N.V.-New York Shares-ADR(a) (France) 1,569,800
- ---------------------------------------------------------------------------------------------
36,700 Sierra Semiconductor Co.(a) 600,963
- ---------------------------------------------------------------------------------------------
31,600 Solectron Corp.(a) 1,406,200
- ---------------------------------------------------------------------------------------------
31,000 Vitesse Semiconductor Corp.(a) 926,125
- ---------------------------------------------------------------------------------------------
26,900 Zilog, Inc.(a) 1,012,113
- ---------------------------------------------------------------------------------------------
36,039,713
- ---------------------------------------------------------------------------------------------
SHOES & RELATED APPAREL-1.41%
160,000 NIKE, Inc.-Class B 14,000,000
- ---------------------------------------------------------------------------------------------
61,200 Nine West Group, Inc.(a) 2,623,950
- ---------------------------------------------------------------------------------------------
16,623,950
- ---------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-4.88%
85,000 ADC Telecommunications, Inc.(a) 3,570,000
- ---------------------------------------------------------------------------------------------
55,200 Allen Group, Inc. 1,366,200
- ---------------------------------------------------------------------------------------------
104,550 Andrew Corp.(a) 5,018,400
- ---------------------------------------------------------------------------------------------
130,000 A T & T Corp. 7,962,500
- ---------------------------------------------------------------------------------------------
62,000 Frontier Corp. 1,960,750
- ---------------------------------------------------------------------------------------------
149,800 Glenayre Technologies, Inc.(a) 6,965,700
- ---------------------------------------------------------------------------------------------
100,000 MCI Communications Corp. 2,943,750
- ---------------------------------------------------------------------------------------------
74,100 Northern Telecom Ltd.(a) (Canada) 3,816,150
- ---------------------------------------------------------------------------------------------
58,500 Octel Communications Corp.(a) 2,617,875
- ---------------------------------------------------------------------------------------------
25,600 Premiere Technologies Corp.(a) 966,400
- ---------------------------------------------------------------------------------------------
28,400 Premisys Communications, Inc.(a) 1,242,500
- ---------------------------------------------------------------------------------------------
100,000 Scientific-Atlanta Inc. 1,850,000
- ---------------------------------------------------------------------------------------------
293,600 Telefonaktiebolaget L.M. Ericsson-ADR (Sweden) 5,982,100
- ---------------------------------------------------------------------------------------------
132,000 Tellabs, Inc.(a) 7,293,000
- ---------------------------------------------------------------------------------------------
23,333 360 Communications Co.(a) 548,325
- ---------------------------------------------------------------------------------------------
10,800 TransPro, Inc.(a) 79,650
- ---------------------------------------------------------------------------------------------
75,000 WorldCom, Inc.(a) 3,525,000
- ---------------------------------------------------------------------------------------------
57,708,300
- ---------------------------------------------------------------------------------------------
TELEPHONE-0.76%
181,600 Cincinnati Bell, Inc. 8,943,800
- ---------------------------------------------------------------------------------------------
TEXTILES-0.92%
245,000 Liz Claiborne, Inc. 8,911,875
- ---------------------------------------------------------------------------------------------
43,400 Tommy Hilfiger Corp.(a) 1,974,700
- ---------------------------------------------------------------------------------------------
10,886,575
- ---------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 17
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
TRANSPORTATION-0.06%
23,700 Rural/Metro Corp.(a) $ 702,113
- ---------------------------------------------------------------------------------------------
TRUCKING-0.06%
50,000 American Freightways Corp.(a) 756,250
- ---------------------------------------------------------------------------------------------
Total Common Stocks 1,156,973,529
- ---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<C> <S> <C>
CONVERTIBLE CORPORATE BONDS-0.25%
MEDICAL (PATIENT SERVICES)-0.25%
$ 3,000,000 Healthsource Inc., 5.00%, 03/01/03
(Acquired 03/18/96-03/19/96; Cost $3,102,682)(b) 2,940,000
- ---------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT-1.74%(c)
20,576,556 Daiwa Securities America Inc., 5.34%, 05/01/96(d) 20,576,556
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-99.77% 1,180,490,085
- ---------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.23% 2,764,674
- ---------------------------------------------------------------------------------------------
NET ASSETS-100.00% $1,183,254,759
=============================================================================================
</TABLE>
ABBREVIATIONS:
ADR - American Depository Receipts
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of this security has been determined in
accordance with procedures established by the Board of Directors. The
market value of this security at April 30, 1996 was $2,940,000 which
represented 0.25% of net assets.
(c) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value as being 102 percent of the sales price of
the repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds, private
accounts and certain non-registered investment companies managed by the
investment advisor or its affiliates.
(d) Joint repurchase agreement entered into 04/30/96 with a maturing value of
$767,124,680. Collateralized by $737,151,000 U.S. Treasury obligations,
0.00% to 11.25% due 05/15/96 to 02/15/21.
See Notes to Financial Statements.
15
<PAGE> 18
Financials
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $907,425,567) $1,180,490,085
- -----------------------------------------------------------------------------------------
Receivables for:
- -----------------------------------------------------------------------------------------
Investments sold 7,547,744
- -----------------------------------------------------------------------------------------
Capital stock sold 23,541
- -----------------------------------------------------------------------------------------
Dividends and interest 658,752
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 14,778
- -----------------------------------------------------------------------------------------
Other assets 27,311
- -----------------------------------------------------------------------------------------
Total assets 1,188,762,211
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 4,358,406
- -----------------------------------------------------------------------------------------
Capital stock reacquired 373,432
- -----------------------------------------------------------------------------------------
Deferred compensation 14,778
- -----------------------------------------------------------------------------------------
Accrued advisory fees 608,179
- -----------------------------------------------------------------------------------------
Accrued accounting services fees 5,159
- -----------------------------------------------------------------------------------------
Accrued directors' fees 3,783
- -----------------------------------------------------------------------------------------
Accrued operating expenses 143,715
- -----------------------------------------------------------------------------------------
Total liabilities 5,507,452
- -----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $1,183,254,759
=========================================================================================
Capital stock, $.01 par value per share:
Authorized 1,000,000,000
- -----------------------------------------------------------------------------------------
Outstanding 95,380,131
=========================================================================================
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE $ 12.41
=========================================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
Financials
STATEMENT OF OPERATIONS
For the six months ended April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends $ 4,501,589
- -----------------------------------------------------------------------------------------
Interest 1,304,429
- -----------------------------------------------------------------------------------------
Total investment income 5,806,018
- -----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 3,477,603
- -----------------------------------------------------------------------------------------
Custodian fees 60,378
- -----------------------------------------------------------------------------------------
Transfer agent fees 8,470
- -----------------------------------------------------------------------------------------
Accounting service fees 30,853
- -----------------------------------------------------------------------------------------
Directors' fees 6,277
- -----------------------------------------------------------------------------------------
Other 153,725
- -----------------------------------------------------------------------------------------
Total expenses 3,737,306
- -----------------------------------------------------------------------------------------
Net investment income 2,068,712
- -----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENT SECURITIES AND FUTURES
CONTRACTS:
Net realized gain on sales of:
Investment securities 92,240,321
- -----------------------------------------------------------------------------------------
Futures contracts 853,326
- -----------------------------------------------------------------------------------------
93,093,647
- -----------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities 15,862,903
- -----------------------------------------------------------------------------------------
Net gain on investment securities 108,956,550
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $111,025,262
=========================================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1996 and the year ended October 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1996 1995
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 2,068,712 $ 2,929,038
- ----------------------------------------------------------------------------------------------
Net realized gain on sales of investment securities and
futures contracts 93,093,647 74,322,239
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities 15,862,903 169,626,929
- ----------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 111,025,262 246,878,206
- ----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (2,276,042) (7,935,485)
- ----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains (74,181,022) (30,550,717)
- ----------------------------------------------------------------------------------------------
Net equalization credits 1,979,925 1,739,780
- ----------------------------------------------------------------------------------------------
Net increase from capital stock transactions 96,696,011 74,806,153
- ----------------------------------------------------------------------------------------------
Net increase in net assets 133,244,134 284,937,937
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,050,010,625 765,072,688
- ----------------------------------------------------------------------------------------------
End of period $1,183,254,759 $1,050,010,625
==============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $ 796,872,597 $ 700,176,586
- ----------------------------------------------------------------------------------------------
Undistributed net investment income 20,772,882 19,000,287
- ----------------------------------------------------------------------------------------------
Undistributed net realized gain on sales of investment
securities and futures contracts 92,544,762 73,632,137
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities 273,064,518 257,201,615
- ----------------------------------------------------------------------------------------------
$1,183,254,759 $1,050,010,625
==============================================================================================
</TABLE>
See Notes to Financial Statements.
17
<PAGE> 20
Financials
NOTES TO FINANCIAL STATEMENTS
April 30, 1996
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Summit Fund, Inc. (the "Fund") is a Maryland corporation registered under
the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is capital
growth.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. Security Valuations -- A security listed or traded on an exchange is valued
at its last sales price on the exchange on which the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the mean between the closing bid and asked prices on that day. Each security
traded in the over-the-counter market (but not including securities reported
on the NASDAQ National Market System) is valued at the mean between the last
bid and asked prices based upon quotes furnished by market makers for such
securities. Each security reported on the NASDAQ National Market System is
valued at the last sales price on the valuation date or absent a last sales
price, at the mean of the closing bid and asked prices. Securities for which
market quotations are not readily available or are questionable are valued at
fair value as determined in good faith by or under the supervision of the
Fund's officers in a manner specifically authorized by the Board of Directors
of the Fund. Short-term obligations having 60 days or less to maturity are
valued at amortized cost which approximates market value.
B. Securities Transactions, Investment Income and Distributions -- Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date.
C. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
D. Equalization -- The Fund follows the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
repurchases of Fund shares, equivalent on a per share basis to the amount of
undistributed net investment income, is credited or charged to undistributed
income when the transaction is recorded so that the undistributed net
investment income per share is unaffected by sales or redemptions of Fund
shares.
E. Stock Index Futures Contracts -- The Fund may purchase or sell stock index
stock index futures contracts as a hedge against changes in market
conditions. Initial margin deposits required upon entering into futures
contracts are satisfied by the segregation of specific securities as
collateral for the account of the broker (the Fund's agent in acquiring the
futures position). During the period the futures contracts are open, changes
in the value of the contracts are recognized as unrealized gains or losses by
"marking to market" on a daily basis to reflect the market value of the
contracts at the end of each day's trading. Variation margin payments are
made or received depending upon whether unrealized gains or losses are
incurred. When the contracts are closed, the Fund recognizes a realized gain
or loss equal to the difference between the proceeds from, or cost of, the
closing transaction and the Fund's basis in the contract. Risks include the
possibility of an illiquid market and that a change in the value of contracts
may not correlate with changes in the value of the securities being hedged.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund has entered into an investment advisory agreement with A I M Advisors,
Inc. ("AIM"). Under the terms of the advisory agreement, the Fund pays AIM a fee
at the annual rate of 1.0% of the first $10 million of the Fund's
18
<PAGE> 21
Financials
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
average daily net assets, 0.75% of the next $140 million of the Fund's average
daily net assets and 0.625% of the Fund's average daily net assets in excess of
$150 million. Under the terms of a sub-advisory agreement between AIM and
NationsBank of Texas, N.A. ("NationsBank"), AIM pays NationsBank a fee at an
annual rate of 0.50% of the first $10 million of the Fund's average daily net
assets, 0.35% of the next $140 million of the Fund's average daily net assets,
0.225% of the next $550 million of the Fund's average daily net assets and 0.15%
of the Fund's average daily net assets in excess of $700 million. These
agreements require AIM to reduce its fees or, if necessary, make payments to the
Fund to the extent required to satisfy any expense limitations imposed by the
securities laws or regulations thereunder of any state in which the Fund's
shares are qualified for sale.
The Fund, pursuant to an administrative services agreement with AIM, has
agreed to reimburse AIM for certain costs incurred in providing accounting
services to the Fund. During the six months ended April 30, 1996, the Fund
reimbursed AIM $30,853 for such services.
During the six months ended April 30, 1996, the Fund paid legal fees of $2,937
for services rendered by Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as
counsel to the Board of Directors. A member of that firm is a director of the
Fund.
Substantially all shares of the Fund are held of record by State Street Bank &
Trust Company as custodian for Summit Investors Plans, a unit investment trust
that is sponsored by A I M Distributors, Inc. (an affiliated company of AIM).
Certain officers and directors of the Fund are officers of AIM and A I M
Distributors, Inc.
NOTE 3-DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Fund may invest directors' fees, if so
elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 4-BANK BORROWINGS
The Fund has a $14,700,000 committed line of credit with a financial institution
syndicate with Chemical Bank of New York as the administrative agent. Interest
on borrowings under the line of credit is payable on maturity or prepayment
date. During the six months ended April 30, 1996, the Fund did not borrow under
the line of credit agreement. The Fund is charged a commitment fee, payable
quarterly, at the rate of 1/10 of 1% per annum on the unused balance of the
Fund's commitment.
NOTE 5-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended April 30, 1996, was
$782,259,646 and $733,792,499, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
as of April 30, 1996, on a tax basis, is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $282,047,429
- -----------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (9,027,365)
- -----------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $273,020,064
=========================================================================================
</TABLE>
Cost of investments for tax purposes is $907,470,021.
NOTE 6-CAPITAL STOCK
Changes in capital stock outstanding for the six months ended April 30, 1996 and
the year ended October 31, 1995 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1996 OCTOBER 31, 1995
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Sold 4,823,372 $53,930,992 10,287,176 $101,899,889
- -----------------------------------------------------------------------------------------------
Issued as reinvestment of
dividends 6,936,341 75,467,373 4,324,777 36,847,100
- -----------------------------------------------------------------------------------------------
Reacquired (2,859,587) (32,702,354) (6,354,529) (63,940,836)
- -----------------------------------------------------------------------------------------------
8,900,126 $96,696,011 8,257,424 $74,806,153
===============================================================================================
</TABLE>
19
<PAGE> 22
Financials
NOTE 7-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share of capital stock
outstanding during the six months ended April 30, 1996, each of the years in the
two-year period ended October 31, 1995, the ten months ended October 31, 1993
and each of the years in the six-year period ended December 31, 1992.
<TABLE>
<CAPTION>
OCTOBER 31,
APRIL 30, ----------------------------------
1996 1995 1994 1993
---------- ---------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 12.14 $ 9.78 $ 10.46 $ 9.64
- ----------------------------------- ---------- ---------- -------- --------
Income from investment
operations:
Net investment income 0.02 0.04 0.10 0.09
- ----------------------------------- ---------- ---------- -------- --------
Net gains (losses) on securities
(both realized and
unrealized) 1.13 2.81 (0.04) 0.73
- ----------------------------------- ---------- ---------- -------- --------
Total from investment
operations 1.15 2.85 0.06 0.82
- ----------------------------------- ---------- ---------- -------- --------
Less distributions:
Dividends from net investment
income (0.03) (0.10) (0.10) --
- ----------------------------------- ---------- ---------- -------- --------
Distributions from capital gains (0.85) (0.39) (0.64) --
- ----------------------------------- ---------- ---------- -------- --------
Total Distributions (0.88) (0.49) (0.74) --
- ----------------------------------- ---------- ---------- -------- --------
Net asset value, end of period $ 12.41 $ 12.14 $ 9.78 $ 10.46
=================================== ========== ========== ======== ========
Total return(b) 10.45% 31.03% 0.61% 8.51%
=================================== ========== ========== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s
omitted $1,183,255 $1,050,011 $765,073 $705,580
=================================== ========== ========== ======== ========
Ratio of expense to average net
assets 0.69%(c) 0.71% 0.72% 0.79%(d)
=================================== ========== ========== ======== ========
Ratio of net investment income to
average net assets 0.38%(c) 0.33% 1.04% 1.13%(d)
=================================== ========== ========== ======== ========
Portfolio turnover rate 69.52% 126.00% 121.69% 115.76%
=================================== ========== ========== ======== ========
<CAPTION>
DECEMBER 31,
--------------------------------------------------------------------
1992 1991 1990 1989 1988(a) 1987
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 10.09 $ 7.56 $ 7.79 $ 6.57 $ 5.70 $ 6.68
- ----------------------------------- -------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income 0.11 0.14 0.15 0.16 0.16 0.09
- ----------------------------------- -------- -------- -------- -------- -------- --------
Net gains (losses) on securities
(both realized and
unrealized) 0.35 3.16 (0.08) 1.86 0.84 (0.40)
- ----------------------------------- -------- -------- -------- -------- -------- --------
Total from investment
operations 0.46 3.30 0.07 2.02 1.00 (0.31)
- ----------------------------------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment
income (0.11) (0.13) (0.16) (0.16) (0.13) (0.10)
- ----------------------------------- -------- -------- -------- -------- -------- --------
Distributions from capital gains (0.80) (0.64) (0.14) (0.64) -- (0.57)
- ----------------------------------- -------- -------- -------- -------- -------- --------
Total Distributions (0.91) (0.77) (0.30) (0.80) (0.13) (0.67)
- ----------------------------------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 9.64 $ 10.09 $ 7.56 $ 7.79 $ 6.57 $ 5.70
=================================== ======== ======== ======== ======== ======== ========
Total return(b) 4.50% 43.64% 0.93% 30.92% 17.65% (4.66)%
=================================== ======== ======== ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s
omitted $604,329 $517,835 $316,043 $262,655 $164,996 $101,541
=================================== ======== ======== ======== ======== ======== ========
Ratio of expense to average net
assets 0.76% 0.75% 0.80% 0.82% 1.04% 0.98%
=================================== ======== ======== ======== ======== ======== ========
Ratio of net investment income to
average net assets 1.09% 1.48% 2.02% 2.14% 2.57% 1.06%
=================================== ======== ======== ======== ======== ======== ========
Portfolio turnover rate 97.41% 109.04% 142.60% 97.26% 114.94% 81.99%
=================================== ======== ======== ======== ======== ======== ========
</TABLE>
(a) The Fund changed investment advisers on October 5, 1988.
(b) For periods less than one year, total return is not annualized.
(c) Ratios are annualized and based on average net assets of $1,088,219,967.
(d) Annualized.
20
<PAGE> 23
Directors &
Officers
<TABLE>
<CAPTION>
<S> <C> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
11 Greenway Plaza
Charles T. Bauer Charles T. Bauer Suite 1919
Chairman and Chief Executive Officer Chairman Houston, TX 77046
A I M Management Group Inc.
Robert H. Graham INVESTMENT ADVISOR
Bruce L. Crockett President A I M Advisors, Inc.
Director, President and Chief 11 Greenway Plaza
Executive Officer John J. Arthur Suite 1919
COMSAT Corporation Senior Vice President & Treasurer Houston, TX 77046
Owen Daly II Gary T. Crum SUB-ADVISOR
Director Senior Vice President TradeStreet Investment Associates, Inc.
Cortland Trust Inc. 101 South Tyron Street
Scott G. Lucas Suite 1000
Carl Frischling Senior Vice President Charlotte, NC 28255
Partner
Kramer, Levin, Naftalis, Nessen, Carol F. Relihan TRANSFER AGENT
Kamin & Frankel Senior Vice President & Secretary Boston Financial Data Services, Inc.
P.O. Box 8300
Robert H. Graham Melville B. Cox Boston, MA 02266-8300
President and Chief Operating Officer Vice President
A I M Management Group Inc. CUSTODIAN
Jonathan C. Schoolar State Street Bank and Trust Company
John F. Kroeger Vice President 225 Franklin Street
Formerly, Consultant Boston, MA 02110
Wendell & Stockel Associates, Inc. Dana R. Sutton
Vice President & Assistant Treasurer COUNSEL TO THE FUND
Lewis F. Pennock Ballard Spahr Andrews & Ingersoll
Attorney P. Michelle Grace 1735 Market Street, 51st Floor
Assistant Secretary Philadelphia, PA 19103
Ian W. Robinson
Consultant; Formerly Executive David L. Kite COUNSEL TO THE DIRECTORS
Vice President and Assistant Secretary Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
Chief Financial Officer 919 Third Avenue
Bell Atlantic Management Nancy L. Martin New York, NY 10022
Services, Inc. Assistant Secretary
DISTRIBUTOR
Louis S. Sklar Ofelia M. Mayo A I M Distributors, Inc.
Executive Vice President Assistant Secretary 11 Greenway Plaza
Hines Interests Suite 1919
Limited Partnership Kathleen J. Pflueger Houston, TX 77046
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
<PAGE> 24
[AIM LOGO APPEARS HERE]
A I M Distributors Inc. -----------------
11 Greenway Plaza, Suite 1919 BULK RATE
Houston, TX 77046 U.S. POSTAGE
PAID
Houston, TX
Permit No. 1919
-----------------
This report may be distributed only to current
shareholders or to persons who have received
a current prospectus of the Fund.
